AAI now warns GoAir over rising dues
NEW DELHI: After SpiceJet, the Airports Authority of India(AAI) has sounded an alarm over budget carrier GoAir’s galloping dues. The state-run airport operator has warned GoAir to bring its dues within its bank guarantee amount by next week, failing which the Wadia Group airline may be put on cash-and-carry.
A senior AAI official said GoAir’s dues are now Rs 42 crore, while its bank guarantee is for Rs 30 crore. A GoAir spokesman said: “GoAir dues to AAI are about Rs 38 crore and our bank guarantee is for over Rs 30 crore. We will abide by what the authority says.”
Trouble at GoAir has surprised aviation authorities as the unlisted airline claims to be a profitable one along with IndiGo. GoAir had reported a profit of Rs 100 crore in 2012-13. The subsequent fiscal (2013-14) was also profitable but the figure was lower due to the fall in rupee and a sharp rise in aviation turbine or jet fuel (ATF) price that year. The first quarter of the current fiscal was profitable and Go expected 2014-15 to be profitable too. Sources say ‘cash flow’ issues may have led to AAI bill crossing the bank guarantee amount.
AAI is facing troubles with a number of airlines on payment front. “Air India has dues of over Rs 2,000 crore and that is just the principal amount. Still, AI cannot be put on cash-and-carry as it is a government-owned airline and another state concern (AAI) will not be allowed to do so. Kingfisher, which closed in October 2012, owed us Rs 167 crore. Now we are worried aboutSpiceJet as well. The low-cost carrier (LCC) has dues of Rs 230 crore,” said an official, while adding that such figures have put AAI’s own financials under serious strain. The official said that Jet Airways and IndiGo have been paying in time.
The aviation ministry has not allowed AAI to put SpiceJet on cash-and-carry and has asked the authority to give the LCC time till January 10 for clearing its dues, a date that is likely to be extended again. A senior aviation ministry justified the directives to AAI for SpiceJet, saying: “We have been informed that SpiceJet’s former promoter Ajay Singh is arranging for funds. Singh says he is in talks with US-based agencies for the same. Since everything in the West is closed for Christmas and New Year, we were told funding will take some time. That’s why we have given more time to SpiceJet. We don’t want any airline to shut down.”
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